EX-99.2 4 d92044ex99-2.txt MONTHLY OPERATING REPORT-KEVCO MANAGEMENT, INC. EXHIBIT 99.2 CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS CASE NUMBER: 401-40788-BJH-11 JUDGE: BARBARA J. HOUSER UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF TEXAS -------- ----- FORT WORTH DIVISION ---------- MONTHLY OPERATING REPORT MONTH ENDING: JUNE 30, 2001 ------------- IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS - 1 THROUGH ACCRUAL BASIS - 7) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY): IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE. RESPONSIBLE PARTY: /s/ Wilford W. Simpson TREASURER --------------------------------------- ----------------------------------- Original Signature of Responsible Party Title WILFORD W. SIMPSON AUGUST 24, 2001 --------------------------------------- ----------------------------------- Printed Name of Responsible Party Date PREPARER: /s/ Dennis S. Faulkner ACCOUNTANT FOR DEBTOR --------------------------------------- ----------------------------------- Original Signature of Preparer Title DENNIS S. FAULKNER AUGUST 24, 2001 --------------------------------------- ----------------------------------- Printed Name of Preparer Date CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 1 CASE NUMBER: 401-40788-BJH-11 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH ASSETS AMOUNT MAY-01 JUNE-01 MONTH ------ --------- ---------- --------- ----- 1. Unrestricted Cash (FOOTNOTE) 6,557,974 16,261,944 5,395,155 2. Restricted Cash 3. Total Cash 6,557,974 16,261,944 5,395,155 0 4. Accounts Receivable (Net) 5. Inventory 6. Notes Receivable 7. Prepaid Expenses (FOOTNOTE) 3,450,681 2,101,323 1,157,443 8. Other (Attach List) 263,606 8,794 8,794 0 9. Total Current Assets 10,272,261 18,372,061 6,561,392 0 10. Property, Plant & Equipment 3,285,885 3,239,512 3,239,512 11. Less: Accumulated Depreciation/Depletion (1,753,163) (1,933,827) (1,933,827) 12. Net Property, Plant & Equipment 1,532,722 1,305,685 1,305,685 0 13. Due From Insiders 14. Other Assets - Net of Amortization (Attach List) 36,082 22,298 22,218 0 15. Other (Attach List) 153,399,371 145,695,477 39,971,438 0 16. Total Assets 165,240,436 165,395,521 47,860,733 0 POST PETITION LIABILITIES 17. Accounts Payable 487,237 487,237 18. Taxes Payable 9,523 10,579 19. Notes Payable 20. Professional Fees 21. Secured Debt 22. Other (Attach List) (FOOTNOTE) 3,873,149 4,062,442 0 23. Total Post Petition Liabilities 4,369,909 4,560,258 0 PRE PETITION LIABILITIES 24. Secured Debt (FOOTNOTE) 75,885,064 38,219,089 15,018,882 25. Priority Debt (FOOTNOTE) 200,832 91,281 91,281 26. Unsecured Debt 1,779,701 1,009,952 1,589,271 27. Other (Attach List) 242,243,558 285,367,952 169,076,322 0 28. Total Pre Petition Liabilities 320,109,155 324,688,274 185,775,756 0 29. Total Liabilities 320,109,155 329,058,183 190,336,014 0 EQUITY 30. Pre Petition Owners' Equity (154,868,719) (154,868,719) 31. Post Petition Cumulative Profit Or (Loss) (2,686,651) (4,118,883) 32. Direct Charges To Equity (Attach Explanation FOOTNOTE) (6,107,292) 16,512,321 33. Total Equity (163,662,662) (142,475,281) 0 34. Total Liabilities and Equity 165,395,521 47,860,733 0
This form x does does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 1 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH ASSETS AMOUNT MAY-01 JUNE-01 MONTH ------ --------- ------ ------- ----- A. Security Deposit 8,794 8,794 8,794 B. Cash Surrender Value: Life Ins. 254,812 C. D. E. TOTAL OTHER ASSETS - LINE 8 263,606 8,794 8,794 0 A. Organizational Costs 36,082 22,298 22,218 B. C. D. E. TOTAL OTHER ASSETS NET OF AMORTIZATION - LINE 14 36,082 22,298 22,218 0 A. Intercompany Receivables (FOOTNOTE) 113,743,558 105,724,039 0 B. Intercompany Royalties 39,655,813 39,971,438 39,971,438 C. D. E. TOTAL OTHER ASSETS - LINE 15 153,399,371 145,695,477 39,971,438 0 POST PETITION LIABILITIES A. Accrued Liabilities Other 1,188,410 1,513,241 B. Deferred Compensation 960,371 960,371 C. 401K Contribution 13,519 0 D. Accrued Health Claims 722,049 600,030 E. Accrued Payroll 860,288 860,288 F. Acc. Professional Fees 128,512 128,512 G. TOTAL OTHER POST PETITION LIABILITIES - LINE 22 3,873,149 4,062,442 0 PRE PETITION LIABILITIES A. Intercompany Payables (FOOTNOTE) 113,743,558 156,867,952 40,576,322 B. 10 3/8% Senior Sub. Notes 105,000,000 105,000,000 105,000,000 C. Sr. Sub. Exchangeable Notes 23,500,000 23,500,000 23,500,000 D. E. TOTAL OTHER PRE PETITION LIABILITIES - LINE 27 242,243,558 285,367,952 169,076,322 0
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 2 CASE NUMBER: 401-40788-BJH-11 INCOME STATEMENT
MONTH MONTH QUARTER REVENUES MAY-01 JUNE-01 MONTH TOTAL -------- -------- ------- ------ ------- 1. Gross Revenues 0 2. Less: Returns & Discounts 0 3. Net Revenue 0 0 0 0 COST OF GOODS SOLD 4. Material 0 5. Direct Labor 0 6. Direct Overhead 0 7. Total Cost Of Goods Sold 0 0 0 0 8. Gross Profit 0 0 0 0 OPERATING EXPENSES 9. Officer / Insider Compensation 57,754 198,596 256,350 10. Selling & Marketing (77) 0 (77) 11. General & Administrative 67,488 63,891 131,379 12. Rent & Lease 39,050 39,558 78,608 13. Other (Attach List) 157,723 867,000 0 1,024,723 14. Total Operating Expenses 321,938 1,169,046 0 1,490,984 15. Income Before Non-Operating Income & Expense (321,938) (1,169,046) 0 (1,490,984) OTHER INCOME & EXPENSES 16. Non-Operating Income (Att List) 72,152 69,069 0 141,221 17. Non-Operating Expense (Att List) 581 0 0 581 18. Interest Expense 0 19. Depreciation / Depletion 51,670 80 51,750 20. Amortization 0 21. Other (Attach List) 0 22. Net Other Income & Expenses 19,901 68,989 0 88,890 REORGANIZATION EXPENSES 23. Professional Fees 271,153 300,925 572,078 24. U.S. Trustee Fees 31,250 31,250 25. Other (Attach List) 0 26. Total Reorganization Expenses 271,153 332,175 0 603,328 27. Income Tax 0 28. Net Profit (Loss) (573,190) (1,432,232) 0 (2,005,422)
This form does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 2 INCOME STATEMENT
MONTH MONTH QUARTER OPERATING EXPENSES MAY-01 JUNE-01 MONTH TOTAL ------------------ ------- ------- ----- ------- A. Payroll 115,459 89,019 204,478 B. Insurance 23,898 759,952 783,850 C. Utilities & Telephone 570 6,971 7,541 D. Taxes 17,796 11,059 28,855 E. 0 TOTAL OTHER OPERATING EXPENSES - LINE 13 157,723 867,000 0 1,024,723 OTHER INCOME & EXPENSES A. Interest and Misc. Income 51,252 69,069 120,321 B. Intercompany Operating Fees 20,900 20,900 C. 0 D. 0 E. 0 TOTAL NON-OPERATING INCOME - LINE 16 72,152 69,069 0 141,221 A. Correction of Error on Books (FOOTNOTE) 581 0 581 B. 0 C. 0 D. 0 E. 0 TOTAL NON-OPERATING EXPENSE - LINE 17 581 0 0 581 REORGANIZATION EXPENSES A. 0 B. 0 C. 0 D. 0 E. 0 TOTAL OTHER REORGANIZATION EXPENSES - LINE 25 0 0 0 0
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 3 CASE NUMBER: 401-40788-BJH-11
CASH RECEIPTS AND MONTH MONTH QUARTER DISBURSEMENTS MAY-01 JUNE-01 MONTH TOTAL ----------------- ------ ------- ----- ------- 1. Cash - Beginning Of Month SEE ATTACHED SUPPLEMENT AND FOOTNOTE RECEIPTS FROM OPERATIONS 2. Cash Sales 0 COLLECTION OF ACCOUNTS RECEIVABLE 3. Pre Petition 0 4. Post Petition 0 5. Total Operating Receipts 0 0 0 0 NON-OPERATING RECEIPTS 6. Loans & Advances (Attach List) 0 7. Sale of Assets 0 8. Other (Attach List) 0 9. Total Non-Operating Receipts 0 0 0 0 10. Total Receipts 0 0 0 0 11. Total Cash Available 0 0 0 0 OPERATING DISBURSEMENTS 12. Net Payroll 0 13. Payroll Taxes Paid 0 14. Sales, Use & Other Taxes Paid 0 15. Secured / Rental / Leases 0 16. Utilities 0 17. Insurance 0 18. Inventory Purchases 0 19. Vehicle Expenses 0 20. Travel 0 21. Entertainment 0 22. Repairs & Maintenance 0 23. Supplies 0 24. Advertising 0 25. Other (Attach List) 0 26. Total Operating Disbursements 0 0 0 0 REORGANIZATION DISBURSEMENTS 27. Professional Fees 0 28. U.S. Trustee Fees 0 29. Other (Attach List) 0 30. Total Reorganization Expenses 0 0 0 0 31. Total Disbursements 0 0 0 0 32. Net Cash Flow 0 0 0 0 33. Cash - End of Month 0 0 0 0
This form x does does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO ACCRUAL BASIS - 3 JUNE, 2001 CASE NUMBER: 401-40788-BJH-11 CASH RECEIPTS AND DISBURSEMENTS
DIST LP MFG MGMT HOLDING COMP KEVCO INC TOTAL ------- ---------- ---------- ------- ------- --------- ---------- 1 CASH-BEGINNING OF MONTH 28 15,478 16,261,944 5,010 6,050 1,000 16,289,510 RECEIPTS FROM OPERATIONS 2 CASH SALES - - - COLLECTION OF ACCOUNTS RECEIVABLE 3 PRE PETITION - - - 4 POST PETITION 155,454 408,048 563,502 5 TOTAL OPERATING RECEIPTS 155,454 408,048 - - - - 563,502 NON OPERATING RECEIPTS 6 LOANS & ADVANCES - - 7 SALE OF ASSETS 300,000 13,335,176 365,203 14,000,379 8 OTHER 49,423 1,171 50,046 - - - 100,640 INTERCOMPANY TRANSFERS 466,052 (275,474) (190,578) - - - SALE EXPENSE REIMBURSEMENT LIFE INSURANCE CASH VALUE RENT TAX REFUND MISC. 49,423 - INTEREST INCOME 50,046 9 TOTAL NON OPERATING RECEIPTS 815,475 13,060,873 224,671 - - - 14,101,019 10 TOTAL RECEIPTS 970,929 13,468,921 224,671 - - - 14,664,521 11 CASH AVAILABLE 970,957 13,484,399 16,486,615 5,010 6,050 1,000 30,954,031 OPERATING DISBURSEMENTS 12 NET PAYROLL 166,627 66,305 169,505 402,437 13 PAYROLL TAXES PAID - 167,389 167,389 14 SALES, USE & OTHER TAXES PAID 281 - 281 15 SECURED/RENTAL/LEASES 215,126 6,622 38,617 260,365 16 UTILITIES 76,221 48,459 3,480 128,160 17 INSURANCE 31,699 - 166,527 198,226 18 INVENTORY PURCHASES 3,055 28,101 - 31,156 19 VEHICLE EXPENSE 906 - - 906 20 TRAVEL 10,030 8,043 143 18,216 21 ENTERTAINMENT - - - - 22 REPAIRS & MAINTENANCE 6,736 2,505 2,703 11,944 23 SUPPLIES 1,157 8,190 30,130 39,477 24 ADVERTISING - 25 OTHER 459,119 13,011,037 10,134,199 379 382 - 23,605,116 LOAN PAYMENTS 300,000 12,883,776 10,000,000 23,183,776 FREIGHT 15,800 112,046 4,535 132,381 CONTRACT LABOR 1,917 - 23,505 25,422 401 K PAYMENTS - 40,675 40,675 PAYROLL TAX ADVANCE ADP - WAGE GARNISHMENTS 3,746 3,746 MISC. 141,402 15,215 61,738 379 382 219,116 26 TOTAL OPERATING DISBURSEMENTS 970,957 13,179,262 10,712,693 379 382 - 24,863,673 REORGANIZATION DISBURSEMENTS 27 PROFESSIONAL FEES 301,398 347,517 648,915 28 US TRUSTEE FEES - 31,250 31,250 29 OTHER - 30 TOTAL REORGANIZATION EXPENSE - 301,398 378,767 - - - 680,165 31 TOTAL DISBURSEMENTS 970,957 13,480,660 11,091,460 379 382 - 25,543,838 32 NET CASH FLOW (28) (11,739) (10,866,789) (379) (382) - (10,879,317) 33 CASH- END OF MONTH - 3,739 5,395,155 4,631 5,668 1,000 5,410,193
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 4 CASE NUMBER: 401-40788-BJH-11
SCHEDULED MONTH MONTH ACCOUNTS RECEIVABLE AGING AMOUNT MAY-01 JUNE-01 MONTH ------------------------- --------- ------- ------- ----- 1. 0 - 30 2. 31 - 60 3. 61 - 90 4. 91 + 5. Total Accounts Receivable 0 0 0 0 6. (Amount Considered Uncollectible) 7. Accounts Receivable (Net) 0 0 0 0
AGING OF POST PETITION MONTH: JUNE-01 TAXES AND PAYABLES ---------------------
0 - 30 31 - 60 61 - 90 91 + TAXES PAYABLE DAYS DAYS DAYS DAYS TOTAL ------------- ------ ------- ------- ------ ------- 1. Federal 0 2. State 6,412 6,412 3. Local 0 4. Other (See below) 4,167 4,167 5. Total Taxes Payable 10,579 0 0 0 10,579 6. Accounts Payable 421,933 12,600 43,518 9,186 487,237
MONTH: JUNE-01 ------------------------ STATUS OF POST PETITION TAXES
AMOUNT BEGINNING TAX WITHHELD AND/OR ENDING TAX FEDERAL LIABILITY* ACCRUED (AMOUNT PAID) LIABILITY ------- -------------- --------------- ------------- ---------- 1. Withholding ** 46,322 (46,322) 0 2. FICA - Employee ** 10,357 (10,357) 0 3. FICA - Employer ** 10,357 (10,357) 0 4. Unemployment 0 0 5. Income 0 6. Other (Attach List) 7. Total Federal Taxes 0 67,036 (67,036) 0 STATE AND LOCAL 8. Withholding 184 (184) 0 9. Sales (FOOTNOTE) 6,412 6,412 10. Excise 0 11. Unemployment 0 0 12. Real Property (FOOTNOTE) 0 13. Personal Property 3,111 1,056 4,167 14. Other (Attach List) 0 15. Total State And Local 9,523 1,240 (184) 10,579 16. Total Taxes 9,523 68,275 (67,219) 10,579
* The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero. ** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payment of deposit. This form x does does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 5 CASE NUMBER: 401-40788-BJH-11 The debtor in possession must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. Accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary. MONTH: JUNE-01 -------------------
BANK RECONCILIATIONS Account # 1 Account # 2 -------------------- ----------- ----------- A. BANK: Bank of America Bank of America Other Accounts TOTAL (Attach List) B. ACCOUNT NUMBER: 1295026976 3751629012 C. PURPOSE (TYPE): Operating Account DIP Disbursement Account 1. Balance Per Bank Statement 478,384 279,598 4,473,613 5,231,595 2. Add: Total Deposits Not Credited 0 0 3. Subtract: Outstanding Checks (25,160) (9,754) (34,914) 4. Other Reconciling Items 69,306 129,168 198,474 5. Month End Balance Per Books 522,530 279,598 4,593,027 5,395,155 6. Number of Last Check Written N/A N/A
INVESTMENT ACCOUNTS
DATE OF TYPE OF BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PURCHASE PRICE CURRENT VALUE --------------------------- -------- ---------- -------------- ------------- 7. 8. 9. 10. (Attach List) 11. Total Investments 0 0 CASH 12. Currency On Hand 1,000 13. Total Cash - End of Month (Footnote) 5,396,155
This form x does does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 5 MONTH: JUNE-01 ------------------------
BANK RECONCILIATIONS Account # 3 Account # 4 Account # 5 -------------------- ----------- ----------- ----------- A. BANK: Bank of America/ Bank of Bank of TOTAL Nations Funds America America OTHER BANK B. ACCOUNT NUMBER: 846713 3751775241 3750801912 ACCOUNTS C. PURPOSE (TYPE): Kevco, Inc. S-T Investment Stay Pay Payroll-Mgmt 1. Balance Per Bank Statement 3,457,946 985,081 6,651 4,449,678 2. Add: Total Deposits Not Credited 0 3. Subtract: Outstanding Checks 0 4. Other Reconciling Items 150,000 150,000 5. Month End Balance Per Books 3,457,946 1,135,081 6,651 4,599,678 6. Number of Last Check Written N/A N/A N/A
INVESTMENT ACCOUNTS
DATE OF TYPE OF PURCHASE CURRENT BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE --------------------------- -------- ---------- -------- ------- A. B. C. D. TOTAL OTHER INVESTMENT ACCOUNTS - LINE 10 0 0
CASE NAME: KEVCO MANAGEMENT, INC. 2ND SUPPLEMENT TO CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 5 MONTH: JUNE-01 ------------------------
BANK RECONCILIATIONS Account # 6 Account # 7 Account # 8 -------------------- ----------- ----------- ----------- A. BANK: Bank of America Bank of America TOTAL B. ACCOUNT NUMBER: 1295027040 3750768628 OTHER BANK ACCOUNTS C. PURPOSE (TYPE): Payroll-Dist Payroll-MFG 1. Balance Per Bank Statement 18,975 4,960 23,935 2. Add: Total Deposits Not Credited 0 3. Subtract: Outstanding Checks (9,754) (9,754) 4. Other Reconciling Items (20,832) (20,832) 5. Month End Balance Per Books (11,611) 4,960 (6,651) 6. Number of Last Check Written N/A N/A N/A
INVESTMENT ACCOUNTS
DATE OF TYPE OF PURCHASE CURRENT BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE --------------------------- -------- ---------- -------- ------- A. B. C. D. TOTAL OTHER INVESTMENT ACCOUNTS - LINE 10 0 0
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 6 CASE NUMBER: 401-40788-BJH-11 MONTH: JUNE-01 -------------------- PAYMENTS TO INSIDERS AND PROFESSIONALS Of the Total Disbursements shown for the month, list the amount paid to Insiders (as defined in Section 101 (31) (A) - (F) of the U.S. Bankruptcy Code) and to Professionals. Also, for payments to Insiders, identify the type of compensation paid (e.g. salary, bonus, commissions, insurance, housing allowance, travel, car allowance, etc.). Attach additional sheets if necessary. INSIDERS
TYPE OF AMOUNT TOTAL PAID NAME PAYMENT PAID TO DATE ---- -------------- -------- ---------- 1. Sharon Romere Expense Reimb. 143 383 2. Joe Tomczak Expense Reimb. 0 626 3. John Wittig Expense Reimb. 0 263 4. Sharon Romere Payroll 7,692 38,461 5. Joe Tomczak Payroll 100,961 177,884 6. John Wittig Payroll 13,462 66,635 7. Will Simpson Payroll 9,615 47,866 Other (see attached) 66,723 85,723 8. Total Payments To Insiders 198,596 417,841
PROFESSIONALS
DATE OF COURT ORDER TOTAL AUTHORIZING AMOUNT TOTAL PAID INCURRED NAME PAYMENT APPROVED AMOUNT PAID TO DATE & UNPAID* ---- ----------- -------- ----------- ---------- --------- 1. Haynes and Boone 3/20/01 700,154 700,154 700,154 23,657 2. Lain, Faulkner & Co., P.C. 3/20/01 140,150 46,592 140,150 84,118 3. Baker & McKenzie 3/20/01 93,418 93,418 93,418 0 4. 5. (Attach List) 6. Total Payments To Professionals 933,722 840,164 933,722 107,775
* Include all fees incurred, both approved and unapproved POST PETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS
SCHEDULED TOTAL MONTHLY UNPAID PAYMENTS AMOUNTS PAID POST NAME OF CREDITOR DUE DURING MONTH PETITION ---------------- --------- ------------ ---------- 1. Bank of America (FOOTNOTE) N/A 23,200,207 15,018,882 2. Leases Payable (FOOTNOTE) (Not Available) 3. 4. 5. (Attach List) 6. TOTAL 0 23,200,207 15,018,882
This form x does does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 6 MONTH: JUNE-01 ---------------------- PAYMENTS TO INSIDERS AND PROFESSIONALS INSIDERS
TYPE OF AMOUNT TOTAL PAID NAME PAYMENT PAID TO DATE ---- --------------- ------- ---------- A. Bill Estes Director's Fees 6,500 13,000 B. Peter McKee Director's Fees 6,000 12,000 C. Richard Nevins Director's Fees 6,500 13,000 D. Wingate Partners Management Fee 44,695 44,695 E. Wingate Partners Expense Reimb. 3,028 3,028 F. G. H. TOTAL OTHER PAYMENTS TO INSIDERS - LINE 5 66,723 85,723
PROFESSIONALS
DATE OF COURT ORDER TOTAL AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED NAME PAYMENT APPROVED PAID TO DATE & UNPAID* ---- ------------ -------- ------ ---------- --------- A. B. C. D. E. F. G. H. TOTAL OTHER PAYMENTS TO PROFESSIONALS-LINE
* Include all fees incurred, both approved and unapproved POST PETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS
SCHEDULED AMOUNTS TOTAL MONTHLY PAID UNPAID PAYMENTS DURING POST NAME OF CREDITOR DUE MONTH PETITION ---------------- --------- ------- -------- A. B. C. D. E. STATUS OF OTHER CREDITORS - LINE 5
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 7 CASE NUMBER: 401-40788-BJH-11 MONTH: JUNE-01 -------------------- QUESTIONNAIRE
YES NO --- -- 1. Have any Assets been sold or transferred outside the normal course of business this reporting period? X 2. Have any funds been disbursed from any account other than a debtor in possession account? X 3. Are any Post Petition Receivables (accounts, notes, or loans) due from related parties? X 4. Have any payments been made on Pre Petition Liabilities this reporting period? X 5. Have any Post Petition Loans been received by the debtor from any party? X 6. Are any Post Petition Payroll Taxes past due? X 7. Are any Post Petition State or Federal Income Taxes past due? X 8. Are any Post Petition Real Estate Taxes past due? X 9. Are any other Post Petition Taxes past due? X 10. Are any amounts owed to Post Petition creditors delinquent? X 11. Have any Pre Petition Taxes been paid during the reporting period? X 12. Are any wage payments past due? X
If the answer to any of the above questions is "Yes", provide a detailed explanation of each item. Attach additional sheets if necessary. SEE FOOTNOTE INSURANCE
YES NO --- -- 1. Are Worker's Compensation, General Liability and other necessary insurance coverages in effect? X 2. Are all premium payments paid current? X 3. Please itemize policies below.
If the answer to any of the above questions is "No", or if any policies have been canceled or not renewed during this reporting period, provide an explanation below. Attach additional sheets if necessary. INSTALLMENT PAYMENTS
TYPE OF POLICY CARRIER PERIOD COVERED PAYMENT AMOUNT & FREQUENCY -------------- ------- -------------- -------------------------- Property Lexingon, Allianz 5/29/00-9/1/01 Annual $3,632 Group Health Blue Cross Blue Shield Self Insured - Renews Annual Annual $141,036 Auto Liberty Mutual 9/1/00-9/1/01 Annual $6,030 Fiduciary Federal Insurance 7/15/00-9/1/01 Annual $10,800 Employee Practices Federal Insurance 6/30/99-6/30/01 Annual $72,800 Crimeguard National Union 6/30/00-9/1/01 Annual $10,873 D&O Liability Great American Insurance 10/31/98-10/31/01 Annual $71,250
This form x does does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO MANAGEMENT, INC. FOOTNOTES SUPPLEMENT CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS MONTH: JUNE-01 ---------------------
ACCRUAL BASIS FORM NUMBER LINE NUMBER FOOTNOTE/EXPLANATION ------ ----------- -------------------- 1 1 Pursuant to the February 12, 2001 Order (1) Authorizing Continued Use of 3 1 Existing Forms and Records; (2) Authorizing Maintenance of Existing 5 13 Corporate Bank Accounts and Cash Management System; and (3) Extending Time to Comply with 11 U.S.C. Section 345 Investment Guidelines, funds in the Bank of America and Key Bank deposit accounts are swept daily into Kevco's lead account number 1295026976. The Bank of America lead account is administered by, and held in the name of Kevco Management Co. Accordingly, all cash receipts and disbursements flow through Kevco Management's Bank of America DIP account. A schedule allocating receipts and disbursements among Kevco, Inc. and its subsidiaries is included in this report as a Supplement to Accrual Basis - 3. 1 7 Prepaid Expenses consist of payroll, rent, insurance and other miscellaneous items. Prepaid payroll, is due to the timing difference between transfers to ADP payroll service and distribution of payroll checks. 1 15A Intercompany receivables/payables are from/to co-debtors Kevco 1 27A Manufacturing, LP (Case No. 401-40784-BJH-11), Kevco Distribution, LP 7 3 (Case No. 401-40789-BJH-11), Kevco Holding, Inc. (Case No. 401-40785- BJH-11), DCM Delaware, Inc. (Case No. 401-40787-BJH-11), Kevco GP, Inc. (Case No. 401-40786-BJH-11), Kevco Components, Inc. (Case No. 401- 40790-BJH-11), and Kevco, Inc. (Case No. 401-40783-BJH-11). Changes in intercompany have not been reflected as post-petition assets and liabilities. 1 15A Adjustments to equity are due to secured debt reductions pursuant to the 1 32 sales of Kevco Manufacturing, LP's operating divisions, the asset sale of the South Region of Kevco Distribution, as well as direct cash payments (see footnote 1,24). The secured debt owed to Bank of America by Kevco, Inc. (Case No. 401-40783-BJH-11) has been guaranteed by all of its co-debtors (see Footnote 1,27A); therefore, the secured debt is reflected as a liability on all of the Kevco entities. The charge to equity is simply an adjustment to the balance sheet. 1 22 The Debtor records on its books accruals for certain liabilities based on 2 17A historical estimates. While the known creditors were listed on the Debtor's Schedules, the estimated amounts were not. Accordingly, for purposes of this report, the accrued liabilities are reflected as post-petition "Accrued Liabilities." During an internal audit of the accrued liabilities account during April, an error was discovered and corrected. 1 1 (A) Pursuant to an Asset Purchase Agreement approved by the Court on 1 24 February 23, 2001 and effective as of the same date among Kevco, Inc., 6 1 Kevco Manufacturing, LP, Wingate Management Co. II, LP and Adorn LLC, 7 4 certain assets and liabilities of Design Components, a division of Kevco Manufacturing, LP (Case No. 401-40784-BJH-11), were transferred to Adorn, LLC. At the effective date of purchase, Buyer assumed certain executory contracts, approximately $1.6 million of Kevco Manufacturing, LP's unsecured pre-petition liabilities, $3.5 million of accounts receivable, $5 million of inventory and $2.2 million (book value) of property and equipment. Payment was made directly to Bank of America, the secured lender, thereby reducing pre-petition secured debt.
CASE NAME: KEVCO MANAGEMENT, INC. FOOTNOTES SUPPLEMENT CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS MONTH: JUNE-01 -----------------------
ACCRUAL BASIS FORM NUMBER LINE NUMBER FOOTNOTE/EXPLANATION ------ ----------- -------------------- (B) Pursuant to an Asset Purchase Agreement approved by the Court on April 3, 2001 and effective as of the same date, Universal Forest Products Eastern Division, Inc. purchased the assets (inventory, equipment, machinery and five of the seven facilities at which Sunbelt Wood Components Division operates) of the Sunbelt division of Kevco Manufacturing, LP. Approximately $7 million in sales proceeds were paid directly to Bank of America thereby reducing pre- petition secured debt. (C) Debtor paid $15 million from available cash during April and $10 million during June to Bank of America to reduce pre-petition secured debt. (D) Pursuant to an Asset Purchase Agreement approved by the Court on April 25, 2001 and effective as of April 30, 2001, Alliance Investment and Management Company, Inc. purchased most of the assets (inventory, equipment, machinery and two of seven facilities) of the South Region of Kevco Distribution, LP. Approximately $4 million in sales proceeds were paid directly to Bank of America thereby reducing pre-petition secured debt. (E) Pursuant to an Asset Purchase Agreement approved by the Court on May 21, 2001 and effective June 1, 2001, Drew Industries Incorporated purchased substantially all of the assets used by the Better Bath Division of Kevco Manufacturing, LP. Approximately $8 million of the sales proceeds were paid directly to Bank of America thereby reducing pre-petition secured debt. (F) Pursuant to an Asset Purchase Agreement approved by the Court on May 21, 2001 and effective June 1, 2001, Duo-Form Acquisition Corporation purchased substantially all of the assets used by the Duo-Form Division of Kevco Manufacturing, LP. Approximately $5 million of the sales proceeds were paid directly to Bank of America thereby reducing pre-petition secured debt. 1 25 Pursuant to Order dated February 12, 2001 and Supplemental Order dated March 14, 2001, debtors were authorized to pay pre-petition salaries and wages up to a maximum of $4,300 per employee. Debtors were also (a) allowed to pay accrued vacation to terminated employees and (b) permitted to continue allowing employees to use vacation time as scheduled. 4 9,12 Sales/ property tax liabilities represent accruals of tax and are not yet due. 6 2 The Debtor is the lessee on hundreds of real and personal property leases, the vast majority of which have been rejected. The Debtor does not isolate monthly payments due or paid on account of such leases. Instead, all lease payments are reflected in the Debtor's accounts payable system. To separately identify monthly accruals and payments on leases would require an enormous outlay of the Debtor's accounting personnel and professionals. The Debtor simply does not have available to it the resources that would be required to provide the detail requested. If any party-in-interest desires specific information about any specific lease, the Debtor will provide such information upon request.